I have a question reguarding why people buy manufacutred homes?
If you look at the cost of a typical new double wide around $60,000. Plus factor in the lot rent, your combined payment would be around $900 bucks a month. In most areas of the country for $900 bucks a month you can buy a decent stick home, that will actualy appreciate in value instead of depreciating.
These days down payment wise, you can get a house loan for as little as 3% down, ($3,000 on a $100,000 house).
I purchased a single wide mobile home in 1993 for about $25,000. I attempted to sell in from 97-98 in is location at that time, after giving up, I moved it closer to my place of employment. (I was traveling 90 min each way to work). Spent $5,000 dollars on the move. Spent from 1998-2001 trying to sell the home, I finnaly sold it recently for a wopping for $15,000.
In the 5 years I attempted to selll my house the value of type of stick house I wanted to buy rose by about $25,000. (from about 110,000 to 135,000).
So my total loss on this endeavor is about $40,000 based on the time it took to get out of this bad deal.
If someone can please explain this logic for me I would love to hear it.
Why Mobile/Manufactured
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DL
RE: Why Mobile/Manufactured
Dear MJ:
I read your message with interest. However, you have omitted a number of important facts. These are: The area of the country in which these events occurred; who produced the home; did you buy the doublewide new or used; what condition was the doublewide in when you bought it; what condition was the doublewide in when you began an effort to sell it; did the home have a peaked, shingled roof and attractive siding; what price were you asking; how many bedrooms did it have; was your manufactured home situated in a desirable manufactured home community; were you available to show the home when potential buyers wanted to see it. Obviously, if you bought a home that lacked market appeal for whatever reason, or if it was in an undesirable location, you were going to encounter a rough time when trying to sell it - whether it was a manufactured or stick-built home.
Another point: Manufactured homes do not depreciate as a matter of course, particularly if the home is of decent quality. Like any home, stick or otherwise, many factors affect the value of the dwelling. Among other things, these factors include the age, condition and size of the home, its accessories and components, and the environment in which the home is located. For instance, and contrary to common myth, a well-maintained three-bedroom manufactured home in an attractive land-lease manufactured home community will increase in value, and it will increase in value more rapidly if located on a private residential plot in a nice neighborhood. Accordingly, if your manufactured home was in good condition and in a nice community, if you were seeking a reasonable price, and if your home had one or more features that home buyers seek (such as a peaked, shingled roof, attractive siding, three bedrooms or more, a home office, large living room, utility room, large master bedroom, walk-in closets, etc.) you should have been able to sell the home provided you were able to show it to potential buyers at their convenience, not yours. If showing it was a problem, did you obtain the services of a real estate broker to help you sell it?
You claim your total "loss" was $40,000, and you imply the "loss" is somehow the fault of the manufactured home. This claim and implication are confusing. If a stick-built home could be purchased in your area for as little as 3% down, as you stated, why didn't you simply buy the stick home you apparently wanted and just donate the manufactured home to charity? On the one hand you would have not received the $15,000 on the sale of the manufactured home, but on the other hand you would have enjoyed the $25,000 increase in value on your stick-built home. Therefore, you would have been $10,000 further ahead if you had simply given the manufactured home away for free.
Also, you mention your purchase price of the manufactured home was $25,000 in 1993. You realized $15,000 on its sale this year. So for about eight years the cost of your home was $104 per month ($10,000 divided by 96 months). Even with an assumed manufactured home community site rent of $340 a month factored-in (creating a total monthly housing cost of $444 per month), your "bad deal" gave you a place to live at a cost that was considerably less than owning a stick-built home and less than renting an apartment of comparable size.
Finally, you say the cost of a typical doublewide is around $60,000. While I don't doubt there are some retailers who probably sell doubles at such a price, characterizing that price as "typical" would be wrong. For example, in the New York area (one of the higher cost of living regions in the country) a 1,568 square foot three-bedroom doublewide of good quality would cost about $51,000, and that cost includes the home, delivery, typical park setup, anchors, skirting, entry deck, new fuel tank, and sales tax. Many other areas of the country probably offer a similar deal for less cost.
As the foregoing indicates, in asking "... why people buy manufactured homes?," you clearly made several incorrect assumptions. The most basic of these is presuming your personal experience is somehow shared by everyone who purchases a manufactured home. It isn't. The majority of folks who purchase and live in today's manufactured homes are pleased with the speed of construction and quality versus value, as well as the space, amenities and limited maintenance offered. Evidently, these are reasons folks buy them.
Looking on the whole of your experience, it seems wrong to try to put all the baggage of blame for your self-perceived "loss" on the entire manufactured home industry. Although I admit all the necessary facts about your experience are currently not known, as I mentioned earlier, at this point the main culprit of your discomfort seems to be in the decisions that you made rather than the type of home you owned. Consequently I do not understand and cannot explain the logic you followed.
In any case, I hope you find better times ahead. Good luck.
I read your message with interest. However, you have omitted a number of important facts. These are: The area of the country in which these events occurred; who produced the home; did you buy the doublewide new or used; what condition was the doublewide in when you bought it; what condition was the doublewide in when you began an effort to sell it; did the home have a peaked, shingled roof and attractive siding; what price were you asking; how many bedrooms did it have; was your manufactured home situated in a desirable manufactured home community; were you available to show the home when potential buyers wanted to see it. Obviously, if you bought a home that lacked market appeal for whatever reason, or if it was in an undesirable location, you were going to encounter a rough time when trying to sell it - whether it was a manufactured or stick-built home.
Another point: Manufactured homes do not depreciate as a matter of course, particularly if the home is of decent quality. Like any home, stick or otherwise, many factors affect the value of the dwelling. Among other things, these factors include the age, condition and size of the home, its accessories and components, and the environment in which the home is located. For instance, and contrary to common myth, a well-maintained three-bedroom manufactured home in an attractive land-lease manufactured home community will increase in value, and it will increase in value more rapidly if located on a private residential plot in a nice neighborhood. Accordingly, if your manufactured home was in good condition and in a nice community, if you were seeking a reasonable price, and if your home had one or more features that home buyers seek (such as a peaked, shingled roof, attractive siding, three bedrooms or more, a home office, large living room, utility room, large master bedroom, walk-in closets, etc.) you should have been able to sell the home provided you were able to show it to potential buyers at their convenience, not yours. If showing it was a problem, did you obtain the services of a real estate broker to help you sell it?
You claim your total "loss" was $40,000, and you imply the "loss" is somehow the fault of the manufactured home. This claim and implication are confusing. If a stick-built home could be purchased in your area for as little as 3% down, as you stated, why didn't you simply buy the stick home you apparently wanted and just donate the manufactured home to charity? On the one hand you would have not received the $15,000 on the sale of the manufactured home, but on the other hand you would have enjoyed the $25,000 increase in value on your stick-built home. Therefore, you would have been $10,000 further ahead if you had simply given the manufactured home away for free.
Also, you mention your purchase price of the manufactured home was $25,000 in 1993. You realized $15,000 on its sale this year. So for about eight years the cost of your home was $104 per month ($10,000 divided by 96 months). Even with an assumed manufactured home community site rent of $340 a month factored-in (creating a total monthly housing cost of $444 per month), your "bad deal" gave you a place to live at a cost that was considerably less than owning a stick-built home and less than renting an apartment of comparable size.
Finally, you say the cost of a typical doublewide is around $60,000. While I don't doubt there are some retailers who probably sell doubles at such a price, characterizing that price as "typical" would be wrong. For example, in the New York area (one of the higher cost of living regions in the country) a 1,568 square foot three-bedroom doublewide of good quality would cost about $51,000, and that cost includes the home, delivery, typical park setup, anchors, skirting, entry deck, new fuel tank, and sales tax. Many other areas of the country probably offer a similar deal for less cost.
As the foregoing indicates, in asking "... why people buy manufactured homes?," you clearly made several incorrect assumptions. The most basic of these is presuming your personal experience is somehow shared by everyone who purchases a manufactured home. It isn't. The majority of folks who purchase and live in today's manufactured homes are pleased with the speed of construction and quality versus value, as well as the space, amenities and limited maintenance offered. Evidently, these are reasons folks buy them.
Looking on the whole of your experience, it seems wrong to try to put all the baggage of blame for your self-perceived "loss" on the entire manufactured home industry. Although I admit all the necessary facts about your experience are currently not known, as I mentioned earlier, at this point the main culprit of your discomfort seems to be in the decisions that you made rather than the type of home you owned. Consequently I do not understand and cannot explain the logic you followed.
In any case, I hope you find better times ahead. Good luck.
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MJ
RE: Why Mobile/Manufactured
Sorry for the confusion.
My home was a single wide. I was using a double wide in my analogies for comparison becuase they are more popular, bigger, and higher cost makes them eaiser to compare to a stick/frame type house.
I purchased my single wide Schult NEW in 1993 for $25,000. At that time based upon my income, I could buy a older house in a lower rated neighboorhood, or buy a mobile home. I choose to by the mobile home. About 3.5 years later, I wanted to sell my home, it was professionaly appriased (based upon location, schools, condition inside/out, etc..) at $26,500. I placed the home on the market at that time for $23,000 with a realator. In the four months the realator had it listed, they never even showed the home to a single person. (This was the largest dealer in the metro area, and they had an onsite office within the park). I attempted to sell it for myself for a few months (using signs with pictures in stores, and newspaper advertisng, nobody would even look).
My work location changed shortly after I purchased my home, and I needed to change my location, because I was going through cars at a rapid pace. (40K miles a year).
I bit the bullet and spent the money to sell the house closer to my work. Even though my house was only a few years old, had vinal siding, and shingled roof, I had a tough time to find a park that would accept the homes. (Most nice parks I found to have exclusive agrements with dealers that buy rights to a lot as soon as it becomes vacant). I finally found decent park that could accomate a 16x80, and moved my home there.
After a little while, I attempted to sell my home again, with no luck. The agents once again didn't show it. Worked off and on for two years with three different agencies, in addition to listing it myself.
Finally, from an add I placed on a bulliten board in the park, someone saw it, and told their friend about it, and they came and looked at it, and lowballed my price by 20 percent. This was actually the first prospective buyer to actually see the inside of my home in a year and a half. The outside of the home is in great condition with decent landscaping, so if the market was there, the house should have been showable.
In reply to you question of why I didn't donate the home and just go buy the stick house, is because I still had a unpaid balance on this house. I did not have the funds to pay the house off.
It could just be this part of the country. In this area (Detroit, MI), new construction continutes at a record pace, employment is strong, and there is just to much negativity about manufacutred housing.
My home was a single wide. I was using a double wide in my analogies for comparison becuase they are more popular, bigger, and higher cost makes them eaiser to compare to a stick/frame type house.
I purchased my single wide Schult NEW in 1993 for $25,000. At that time based upon my income, I could buy a older house in a lower rated neighboorhood, or buy a mobile home. I choose to by the mobile home. About 3.5 years later, I wanted to sell my home, it was professionaly appriased (based upon location, schools, condition inside/out, etc..) at $26,500. I placed the home on the market at that time for $23,000 with a realator. In the four months the realator had it listed, they never even showed the home to a single person. (This was the largest dealer in the metro area, and they had an onsite office within the park). I attempted to sell it for myself for a few months (using signs with pictures in stores, and newspaper advertisng, nobody would even look).
My work location changed shortly after I purchased my home, and I needed to change my location, because I was going through cars at a rapid pace. (40K miles a year).
I bit the bullet and spent the money to sell the house closer to my work. Even though my house was only a few years old, had vinal siding, and shingled roof, I had a tough time to find a park that would accept the homes. (Most nice parks I found to have exclusive agrements with dealers that buy rights to a lot as soon as it becomes vacant). I finally found decent park that could accomate a 16x80, and moved my home there.
After a little while, I attempted to sell my home again, with no luck. The agents once again didn't show it. Worked off and on for two years with three different agencies, in addition to listing it myself.
Finally, from an add I placed on a bulliten board in the park, someone saw it, and told their friend about it, and they came and looked at it, and lowballed my price by 20 percent. This was actually the first prospective buyer to actually see the inside of my home in a year and a half. The outside of the home is in great condition with decent landscaping, so if the market was there, the house should have been showable.
In reply to you question of why I didn't donate the home and just go buy the stick house, is because I still had a unpaid balance on this house. I did not have the funds to pay the house off.
It could just be this part of the country. In this area (Detroit, MI), new construction continutes at a record pace, employment is strong, and there is just to much negativity about manufacutred housing.
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Jon
RE: Why Mobile/Manufactured
MJ--
Seems you and DL have made interesting remarks. I have but one comment and it isn't necessarily directed at you as much as it is made as a general or overall observation.
What you point out is what happens from time to time whenever a home is to be sold. My company not only sells manufactured homes, but also is a real estate brokerage that lists existing stick-built homes for sale. A few years ago two cape cod homes we had for sale just wouldn't attract any serious offers. At the time one was about 20 years old and the other was about 30. Curiously the younger one was on the market for almost 16 months before anyone asked to see it.
What strikes me as an interesting reaction is that when these things happen to a manufactured home the entire industry is called to task. I remember receiving rather hurtful letters from irate folks because their potential buyers were having trouble obtaining loans with which to buy the manufactured homes. Instead of critizing the banking industry, they blamed all of the manufactured home industry.
Yet, when it happened to the cape cod home only that particular home was at fault. The owner called and asked "What's wrong with my house?" He didn't say the stick-built housing industry is bad. Nor do others who have had similar tough times selling their stick-built homes.
I realize the example I portray isn't based on scientific analysis, and I suppose I could get more professional about this. But citing facts and figures isn't my intention right now. I just wanted to share an observation I've held for a while and your message reminded me of it.
Seems you and DL have made interesting remarks. I have but one comment and it isn't necessarily directed at you as much as it is made as a general or overall observation.
What you point out is what happens from time to time whenever a home is to be sold. My company not only sells manufactured homes, but also is a real estate brokerage that lists existing stick-built homes for sale. A few years ago two cape cod homes we had for sale just wouldn't attract any serious offers. At the time one was about 20 years old and the other was about 30. Curiously the younger one was on the market for almost 16 months before anyone asked to see it.
What strikes me as an interesting reaction is that when these things happen to a manufactured home the entire industry is called to task. I remember receiving rather hurtful letters from irate folks because their potential buyers were having trouble obtaining loans with which to buy the manufactured homes. Instead of critizing the banking industry, they blamed all of the manufactured home industry.
Yet, when it happened to the cape cod home only that particular home was at fault. The owner called and asked "What's wrong with my house?" He didn't say the stick-built housing industry is bad. Nor do others who have had similar tough times selling their stick-built homes.
I realize the example I portray isn't based on scientific analysis, and I suppose I could get more professional about this. But citing facts and figures isn't my intention right now. I just wanted to share an observation I've held for a while and your message reminded me of it.
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Dee
RE: Why Mobile/Manufactured
Here's why little ole me will buy a MH instead of a stickbuilt.
I work in a heavy populated area of the city. I fight traffic daily to and from work. Sure, I can go out and buy a stickbuilt home, but it will be located 10 feet away from my neighbors on both sides. I won't be able to walk out into my yard without a neighbor watching me from his window while he's sitting at the dinner table. I won't be able to have a family get together without my relatives wondering where are they all going to park. My budget will not afford me $100,000 for a home. Therefore what I can afford in a stickbuilt will be approx. 1300 sq ft. Something I will definitely outgrow in time.
Or, I can go out and buy some of the prettiest land around, and put a doublewide MH on it. I will have 5 beautiful rolling acres which will be my welcomed escape after a day of fighting traffic. I will also have a 2000 sq ft home which I will never outgrow. My friends and relatives can come over any time because parking is in abundance. No neighbors nearby to watch everything I do. I can have that long winding driveway. I can have a place to park my RV and my boat and my jet skis and all the toys I can't live without. I can sit on my deck and watch the birds and I can even HEAR them sing too. There's nobody around if I take the trash out in my bathrobe. I can work outside all day long without even combing my hair if I want. I can wear those holey sweats I own.
It's my choice. $130,000 for a small roof over my head in a cramped neighborhood. Or $80,000 for wide open spaces. It's all according to your preference. But this is why I choose to live in a MH. It allows me to have all the things I want without giving up anything in the process.
I work in a heavy populated area of the city. I fight traffic daily to and from work. Sure, I can go out and buy a stickbuilt home, but it will be located 10 feet away from my neighbors on both sides. I won't be able to walk out into my yard without a neighbor watching me from his window while he's sitting at the dinner table. I won't be able to have a family get together without my relatives wondering where are they all going to park. My budget will not afford me $100,000 for a home. Therefore what I can afford in a stickbuilt will be approx. 1300 sq ft. Something I will definitely outgrow in time.
Or, I can go out and buy some of the prettiest land around, and put a doublewide MH on it. I will have 5 beautiful rolling acres which will be my welcomed escape after a day of fighting traffic. I will also have a 2000 sq ft home which I will never outgrow. My friends and relatives can come over any time because parking is in abundance. No neighbors nearby to watch everything I do. I can have that long winding driveway. I can have a place to park my RV and my boat and my jet skis and all the toys I can't live without. I can sit on my deck and watch the birds and I can even HEAR them sing too. There's nobody around if I take the trash out in my bathrobe. I can work outside all day long without even combing my hair if I want. I can wear those holey sweats I own.
It's my choice. $130,000 for a small roof over my head in a cramped neighborhood. Or $80,000 for wide open spaces. It's all according to your preference. But this is why I choose to live in a MH. It allows me to have all the things I want without giving up anything in the process.
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Terry
RE: Why Mobile/Manufactured
Dee, That's great, and that's me. Being an engineer for the BNSF railroad and an income of 109,000.00 a year. I choose to live in the most expensive manufactured home that's on 247 acres for only 100,000.00 and the home for 67,000.00 and that's worth it.
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MJ
RE: Why Mobile/Manufactured
Question for Terry and Dee...
Did either of you ever compare the cost of a manufactured home vs a modular that has a foundation? If so what is the difference.
The majory of my comments are based upon trailer park lifestyle, and not people who place a home on a large lot of land.
Did either of you ever compare the cost of a manufactured home vs a modular that has a foundation? If so what is the difference.
The majory of my comments are based upon trailer park lifestyle, and not people who place a home on a large lot of land.
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Kay Green
RE: Why Mobile/Manufactured
We also just purchased a manufactured home to put on land. We relocated to KY about 5 years ago. We had owned our own stickbuilt home where we lived before. We have been renting since we moved here and looking at houses ever since. In this part of the country especially in some of the small towns. There are not many building codes, if you buy a stick built house you really have no idea of what you are getting. In the town we live in, the only building codes are for plumbing and electrical. There are none for framing or foundations or anything else. We were not comfortable with this and starting looking at manufactured homes. Since they are HUD approved they go through much more inspection than any stick built house around here. We bought a little over 9 acres and have purchased a 2300 sq. ft. home. We would have spent a lot more for the same sq. ft. in a stick built home. I have to agree with Dee it all depends on what you want. As far as the modular homes, we did price them and they are not much different than a stick built home.
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Sandy
RE: Why Mobile/Manufactured
Just wanted to add my two cents! We live in Southern California and for about $275,000 we can buy a 2 bedroom, 1 bath fixer upper stick house. Or I can live in an undesirable area and get a 3 bedroom, 2 bath stick house for $200,000 plus. Or I can buy a 3 bedroom, 2 bath MF house which is 1456 sq.ft. I get to pick everything in it the way I want it and brand new. MF houses in this area are a lot more than the prices you guys posted. Ours is a Golden West with a base price of $87,900. My friend bought a Fleetwood here that cost almost the same. We are putting ours in a park with space rent of $650. But I would rather go this route and live in a good area with good schools than pay $1500 a month mortgage for a stickhouse that needs a lot of work and has a lot less square footage. And have to live in an area that I dont feel comfortable sending my child to school.
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Kay Green
RE: Why Mobile/Manufactured
Sandy,
Just wondering what part of Southern CA? That is where we relocated from. We were in the San Diego area. You are right the prices of everything are much hire there. We bought 9 acres here for about$20,000.
Just wondering what part of Southern CA? That is where we relocated from. We were in the San Diego area. You are right the prices of everything are much hire there. We bought 9 acres here for about$20,000.
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